1851

When it comes to franchising, restaurants are some of the first businesses that come to mind for many people. And these brands dominate as some of the top restaurants around the world today. On the other hand, for many people, their favorite restaurant may be a local spot in town that cannot be found anywhere else.&nbsp;So, what is the best route to take when opening a business? Both independent and franchise restaurant brands can be viable, profitable opportunities for aspiring entrepreneurs. But they are certainly different in many ways. Franchises, for one, are focused on a replicable system, said&nbsp;<a href="https://www.linkedin.com/in/robingagnonrestaurantbroker/?trk=pub-pbmap&utm_source=1851franchise.com&utm_medium=article&utm_campaign=opening-a-franchise-vs-independent-restaurant-2722002" target="_blank" rel="nofollow">Robin Gagnon</a>, CEO and co-founder of We Sell Restaurants, a business broker franchise focused on the sale of restaurants.&nbsp;“When it comes to running a successful franchise business, efficiency is key,” she said. “So, there’s already built in management of food costs, understanding of labor hours, control of operations—all the critical elements to deliver every single time. The heavy lifting is done for you.”&nbsp;Meanwhile, independent restaurants are more of a learn-as-you-go game. Instead of relying on a model that is provided to you, opening an independent restaurant means experimenting with menus, evaluating costs and figuring out a labor system that works.&nbsp;“Buying a franchise versus an independent restaurant just shortens that learning curve immensely,” added Gagnon. “So you go right into profit making as soon as possible in a challenging environment.”&nbsp;Financial DifferencesStarting a business of any kind requires a significant amount of money, but costs can vary considerably between franchises and independent restaurants. For example, the initial startup costs&nbsp;<a href="https://www.webstaurantstore.com/article/3/independent-ownership-franchise-pros-cons.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=opening-a-franchise-vs-independent-restaurant-2722002#:~:text=While%20the%20initial%20startup%20costs,business%20is%20right%20for%20you." target="_blank" rel="nofollow">are typically lower for opening a franchise</a> location than an independent restaurant due to a higher access to capital. Franchising also requires specific and ongoing financial fees, while opening an independent restaurant gives an owner more control over the budget.&nbsp;Financial differences also come into play when it comes time to sell a restaurant. Gagnon pointed to a&nbsp;<a href="https://www.pba.edu/news/news-2021/rinker-school-of-business-researchers-find-franchise-business-owners-earn-more-at-resale.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=opening-a-franchise-vs-independent-restaurant-2722002" target="_blank" rel="nofollow">study</a> from Palm Beach Atlantic University’s Marshall E. Rinker Sr. School of Business that examined 2,159 business resales over a 10-year period. The researchers found that franchise businesses sold at a 1.5 times higher price than non-franchise businesses.“Franchising not only shortens the learning curve going in to get to greater profitability, but you realize more from the investment on your exit as well,” Gagnon noted.&nbsp;&nbsp;The Pros and ConsLike many things in life, there are upsides and downsides to both business opportunities that aspiring restaurant owners should take into consideration.“The pros to a franchise would be efficiency and a quick start-up time,” said Gagnon. “There’s also brand recognition and access to some capital and resources. I would say the cons would be limited ability to modify the existing scenario and potentially higher costs, depending on the start-up costs for the brand.”&nbsp;When it comes to independent restaurants, one of the top pros is the ability to have more ownership over the model.&nbsp;“There’s also a lot of flexibility that, if something does not work, owners can terminate and move on. Franchises, by contrast, are typically tied to a 10-year agreement. So you’re agreeing to do it their way for 10 years.”&nbsp;Which One Is Right For Me?&nbsp;There are opportunities for success in both opening a franchise restaurant and opening an independent restaurant. Gagnon noted that successful franchisees follow the path prescribed by the franchise. This means that franchises are a great route for those willing to trust in the plan set forth by the franchisor.&nbsp;“However, many people are too entrepreneurial for that mindset,” noted Gagnon. “So, if you’re the type to want to go in and change up the menu or change how the logo looks, I would say to avoid a franchise and go out and build a concept of your own.”&nbsp;

Opening a Franchise vs. Independent Restaurant

1851 Franchise

Both restaurant models have a lot to offer but have significant differences.

opening-a-franchise-vs-independent-restaurant

HomeTeam Inspection Service

Good Day Columbus: Home Insurance Expert Reveals Why Central Ohio Premiums Are Rising and How to Combat Costs

rising-home-insurance-costs-ohio

CapitalSpring

Primetime Fitness Expands Crunch Portfolio With CapitalSpring’s Backing

primetime-fitness-expands-crunch-portfolio-with-capitalsprings-backing

Children's Lighthouse

How Children’s Lighthouse Franchisees Scale to Multiple Locations

how-childrens-lighthouse-franchisees-scale-to-multiple-locations

Express Employment Professionals

Betting on Himself: How Chris Brown Built an Express Employment Professionals Franchise From the Ground Up

betting-on-himself-how-chris-brown-built-an-express-employment-professionals-franchise-from-the-ground-up

Comfort Keepers

Comfort Keepers® Named One of America’s Best Home-Care Providers

comfort-keepers-named-one-of-americas-best-home-care-providers

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

"Come in, We're OPEN" sign against abstract background

Small Business Optimism Dips, Raising Concerns for Franchise Owners

small-business-optimism-dips-raising-concerns-for-franchise-owners

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

DevHub - Meet the Supplier - 1851 Franchise

DevHub: Scalable Digital Marketing for Franchises and Multi-Location Brands

devhub-meet-the-supplier

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

Multi-Unit Wendy’s Operator Signs 12-Unit Deal With Layne’s Chicken Fingers

ricki-oberoi-laynes-chicken-fingers-growth

Design with school-aged child standing on pencil with text "Education Franchises" and "<$500K"

Top Education Franchises Under $500K To Explore in 2025

top-education-franchises-under-500k

1851 Franchise Deep Dive graphic with Sparkle Squad logo

Sparkle Squad Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-sparkle-squad-franchise-costs-fees-profit-and-data

Opening a Franchise vs. Independent Restaurant

MORE STORIES LIKE THIS